Trading is like any other discipline. You need to work, you need to practice, to become perfect. There is no other way around, although for some it will be easier, for others a bit harder. It happens that fresh traders want to do everything by themselves and they lose resources in the end. A great part of them will be discouraged and will quit. Some will use the Olymp Trade demo account for a long time until they will feel comfortable enough to try the real one.
Most of the time I write from my own experience, from what I have learned during my adventure with trading. But this time I chose to do something different. I wanted the “beginners” to take a stand and speak about trading from their perspective. I asked each and everyone the very same question: What do you consider as the most valuable lesson you have learned after one month of trading at Olymp trade? The answers were somewhat similar, so I gathered them here and now I am presenting my recommendations to you.
“Just follow the market”
Often people think they can predict the direction of the market. Occasionally, they are fortunate enough. But more often than not the situation on the market will be just the opposite. This is why the best advice is to find out where the price is heading.
As I wrote in numerous guides, it is a good idea to enter the trade depending on where the price is moving. The green candle clearly indicates that the price is going up. This is the moment when you ought to make a purchase. Trying to go against the market will usually result in losing money.
“Always determine the moment you will close the transaction beforehand”
It is not difficult to enter the trade. You simply click the Buy or Sell button. But then you may face losses. You should always specify the exit point before you start trading.
In the case of trading financial derivatives, it can be for example a minute. And then you observe the market and indicators and calculate the probability of making a profit with your trade before the time runs out.
“Always have in control impatience and greed”
There are plenty of new traders who dream about quick wins. They imagine entering the trade once or twice and then hurrying to the bank with a smile on their faces. But real trading is not like that. You need to spend a great deal of time analyzing the markets and waiting for the right signal.
Greed can cost you a lot. This particular emotion stands behind many wash-ups of the trading accounts. New traders (but not only new, but some experienced traders also make this mistake too) invest large sums on one trade because they want to make it big fast. And then they lose.
Take some time to analyze the markets, to review your strategy before you enter the trade. Putting up to 5% of your account balance on a single trade is what I recommend.
“Do not have more than one trade opened at a time”
It is not the best idea to open a large number of trades at the same time. It will only maximize your market exposure. If most of your trades fail, adding up all your transactions, you will lose a great deal of money in a concise time.
“Trade using higher time frames”
It is just easier to analyze longer time frames. The price movements are observed every millisecond. As time goes by, you can identify the trend and avoid those fluctuations. I would say to set a 5-minute or longer time frame, especially if you are a newbie.
“Develop your own trading strategy”
You can notice that every successful trader has his own strategy. Building a unique strategy makes you more disciplined in following it. It is also easier to improve or rebuild it in case it will look like it doesn’t work.
Pros and Cons of Trading at Olymp Trade 😊🙁
- Accessible platform for beginners
- Wide range of assets and instruments
- Offers a demo account for practice
- Educational resources available
- Emotions like greed and impatience can hinder success
- Requires time and effort to develop a unique strategy
- Higher time frames are recommended for new traders
Trading Tools and Techniques at Olymp Trade
|Following the market||Understanding the market direction and making trades based on the current trend.|
|Specifying exit points||Determining when to close a trade before entering it, reducing the risk of loss.|
|Controlling impatience and greed||Managing emotions to avoid making impulsive decisions that can lead to losses.|
|Using higher time frames||Analyzing longer time frames for easier trend identification and avoiding short-term fluctuations.|
|Developing a unique strategy||Creating a personalized trading strategy for better discipline and adaptability.|
Maybe a month seems to be too short a time to gain experience. But I’m telling you, any time spending trading is valuable. You learn important lessons with every new trade you make, no matter is it a win or a loss.
What is the lesson of great importance for you after trading for one month only on the Olymp Trade platform? Tell us all about it in the following comments section.
Best of luck!
Frequently Asked Questions
- Q: How can I improve my trading performance at Olymp Trade?
A: Practice patience, control emotions like impatience and greed, and develop a unique trading strategy to increase your chances of success.
- Q: What time frame should I use as a beginner at Olymp Trade?
A: It is recommended to use a 5-minute or longer time frame to avoid short-term fluctuations and better identify trends.
- Q: How can I manage my emotions while trading?
A: Focus on your trading strategy, set clear goals, and maintain discipline. This will help you avoid making impulsive decisions based on emotions.
- Q: How much of my account balance should I invest in a single trade?
A: As a general rule, investing up to 5% of your account balance in a single trade is recommended.
- Q: Can I open multiple trades at the same time at Olymp Trade?
A: While it is possible, opening multiple trades simultaneously may increase your market exposure and risk of loss. It is generally better to focus on one trade at a time.
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